Comptroller of Income Tax v BLM: Disclosure of Bank Statements and Tax Examination vs. Tax Evasion Investigation
In Comptroller of Income Tax v BLM, the Singapore High Court addressed an application by the Comptroller of Income Tax for the disclosure of bank statements to the National Tax Agency of Japan (J-NTA) under s 105J of the Income Tax Act and art 26 of the Double Taxation Agreement between Singapore and Japan. The applicant, a Japanese national, sought to intervene and stay the order, arguing the request was for a tax examination, not a tax evasion investigation, and that it violated Japanese law. The High Court, Choo Han Teck J, dismissed the application, holding that the request complied with the Eighth Schedule of the Act and that the court's role was administrative, not to adjudicate on Japanese law. The court found no grounds to stay or discharge the original order.
1. Case Overview
1.1 Court
High Court1.2 Outcome
Application to stay or discharge the order for disclosure of bank statements is dismissed.
1.3 Case Type
Tax
1.4 Judgment Type
Grounds of Decision
1.5 Jurisdiction
Singapore
1.6 Description
The High Court allowed IRAS to disclose bank statements to the J-NTA for tax examinations, rejecting arguments about investigation validity and Japanese law.
1.7 Decision Date
2. Parties and Outcomes
| Party Name | Role | Type | Outcome | Outcome Type | Counsels |
|---|---|---|---|---|---|
| Comptroller of Income Tax | Plaintiff | Government Agency | Application granted | Won | Patrick Nai Thiam Siew of Inland Revenue Authority of Singapore Vikna s/o Thambirajah of Inland Revenue Authority of Singapore Jimmy Goh of Inland Revenue Authority of Singapore |
| BLM | Defendant | Individual | Application to stay or discharge order dismissed | Lost |
3. Judges
| Judge Name | Title | Delivered Judgment |
|---|---|---|
| Choo Han Teck | J | Yes |
4. Counsels
| Counsel Name | Organization |
|---|---|
| Patrick Nai Thiam Siew | Inland Revenue Authority of Singapore |
| Vikna s/o Thambirajah | Inland Revenue Authority of Singapore |
| Jimmy Goh | Inland Revenue Authority of Singapore |
4. Facts
- J-NTA requested IRAS to disclose bank statements from BJM relating to a Japanese national and seven other account-holders.
- The request related to ongoing tax examinations in Japan.
- IRAS made an ex parte application to the High Court for an order to compel BJM to produce the bank statements.
- The applicant argued that the request was invalid as it was made pursuant to a tax examination and not investigations into tax evasion.
- The applicant also argued that the relevant tax authority in Japan had withdrawn its investigations into the applicant.
- The applicant commenced proceedings in Japan against J-NTA.
5. Formal Citations
- Comptroller of Income Tax v BLM, Originating Summons No 331 of 2013, [2013] SGHC 212
6. Timeline
| Date | Event |
|---|---|
| J-NTA issued a letter of request to IRAS for disclosure of bank statements. | |
| IRAS served the applicant with notice of the application. | |
| IRAS made an ex parte application to the High Court. | |
| Counsel for the applicant and IRAS appeared before the judge four times in May 2013. | |
| Court granted the application for disclosure of bank statements. | |
| The applicant filed a complaint against J-NTA in Japan. | |
| Mr Sharma filed Summons No 5041 of 2013 to stay or discharge the 31st May order. | |
| Judgment reserved. |
7. Legal Issues
- Disclosure of Information for Tax Purposes
- Outcome: The court held that the disclosure was justified under the Income Tax Act and the Double Taxation Agreement.
- Category: Substantive
- Related Cases:
- [2012] SGHC 112
- Validity of Request under Japanese Law
- Outcome: The court held that it was not the place of the Singapore High Court to enquire into the propriety of the J-NTA request under Japanese law.
- Category: Jurisdictional
8. Remedies Sought
- Disclosure of bank statements
- Stay or discharge of order for disclosure
9. Cause of Actions
- No cause of actions
10. Practice Areas
- Tax Litigation
- Cross-Border Tax Issues
11. Industries
- Finance
12. Cited Cases
| Case Name | Court | Affirmed | Citation | Jurisdiction | Significance |
|---|---|---|---|---|---|
| Comptroller of Income Tax v AZP | High Court | Yes | [2012] SGHC 112 | Singapore | Cited for the principle that information requested must be foreseeably relevant for carrying out the provisions of the Treaty or the administration and enforcement of the tax laws of the requesting country. |
| Virsagi Management (S) Pte Ltd v Welltech Construction Pte Ltd | Court of Appeal | Yes | [2013] SGCA 50 | Singapore | Cited regarding the doctrines of lis alibi pendens and forum non conveniens in conflicts of law. |
13. Applicable Rules
| Rule Name |
|---|
| Rules of Court (Cap 322, R 5, 2006 Rev Ed) |
14. Applicable Statutes
| Statute Name | Jurisdiction |
|---|---|
| Income Tax Act (Cap 134, Rev Ed 2008) | Singapore |
| Banking Act (Cap 19) | Singapore |
15. Key Terms and Keywords
15.1 Key Terms
- Disclosure of information
- Tax examination
- Tax evasion
- Double taxation agreement
- Letter of request
- Eighth Schedule
- National Tax Agency of Japan
- Inland Revenue Authority of Singapore
15.2 Keywords
- tax
- disclosure
- bank statements
- Japan
- Singapore
- IRAS
- J-NTA
17. Areas of Law
| Area Name | Relevance Score |
|---|---|
| Income taxation | 90 |
| International Tax Cooperation | 70 |
| Disclosure of Bank Statements | 60 |
| Banking Law | 40 |
| Administrative Law | 30 |
16. Subjects
- Tax
- International Tax
- Disclosure of Information